Beginning in 2019, Sub. S.B. 226 provides for a permanent sales tax holiday on the first Friday, Saturday, and Sunday of August each year. The sales tax holiday will begin on the designated Friday in August at 12:00 a.m. and end on the designated Sunday in August at 11:59 p.m. This year, Ohio’s sales tax holiday is from Friday, August 6, 2021, at 12:00 a.m. to Sunday, August 8, 2021, at 11:59 p.m.
NFIB was a strong proponent of making the Ohio Sales tax permanent. We encourage all Ohioans to not forget their local small businesses when making tax-exempt purchases during this weekend.
During the holiday, the following items are exempt from sales and use tax:
- An item of clothing priced at $75 or less;
- An item of school supplies priced at $20 or less; and
- An item of school instructional material priced at $20 or less.
There is no limit on the amount of the total purchase. The qualification is determined item by item. Items used in a trade or business are not exempt under the sales tax holiday.
“Clothing” is defined as all human wearing apparel suitable for general use. While clothing is eligible for the holiday, the following items are not eligible for the holiday and are subject to tax during the holiday period:
- Items purchased for use in a trade or business.
- Clothing accessories or equipment. Clothing accessories or equipment include: briefcases; cosmetics; hair notions, including, but not limited to, barrettes, hair bows, and hair nets; handbags; handkerchiefs; jewelry; sun glasses (non-prescription); umbrellas; wallets; watches; and wigs and hair pieces.
- Protective equipment. Protective equipment includes: breathing masks; clean room apparel and equipment; ear and hearing protectors; face shields; hard hats; helmets; paint or dust respirators; protective gloves; safety glasses and goggles; safety belts; tool belts; and welders gloves and masks.
- Sewing equipment and supplies including, but not limited to, knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles; and sewing materials that become part of “clothing” including, but not limited to, buttons, fabric, lace, thread, yarn, and zippers.
- Sports or recreational equipment. Sport or recreational equipment includes ballet and tap shoes; cleated or spiked athletic shoes; gloves, including, but not limited to, baseball, bowling, boxing, hockey, and golf; goggles; hand and elbow guards; life preservers and vests; mouth guards; roller and ice skates; shin guards; shoulder pads; ski boots; waders; and wetsuits and fins.
- Belt buckles sold separately.
- Costume masks sold separately.
- Patches and emblems sold separately.
“School supplies” include only the following items: binders; book bags; calculators; cellophane tape; blackboard chalk; compasses; composition books; crayons; erasers; folders (expandable, pocket, plastic, and manila); glue, paste, and paste sticks; highlighters; index cards; index card boxes; legal pads; lunch boxes; markers; notebooks; paper; loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper; pencil boxes and other school supply boxes; pencil sharpeners; pencils; pens; protractors; rulers; scissors; and writing tablets.
Items not included in this list are taxable. “School supplies” do not include any item purchased for use in a trade or business.
“School instructional material” includes only the following items: reference books, reference maps and globes, textbooks, and workbooks. Items not included in this list are taxable. “School instructional material” does not include any material purchased for use in a trade or business.
The Ohio Department of Taxation has detailed “frequently asked questions” where you can get additional information.
